For the quarter ended Feb., the department store posted a profit of $334 million, or $1.56 a share, compared with a profit of $378 million, or $1.66 a share, a year ago. That was below Kohl’s own forecast but still enough to beat analysts’ estimate for $1.54 a share.

Net revenue fell 12% to $6.1 billion which was in line with analysts’ forecasts. Comparable store sales were down 2% (also in line with estimates).

But Maintained Margin

Kohl’s is amid a change in its merchandise strategy to move away from an assortment dominated by its exclusive brands and add a wider selection of national brands.

According to Kevin Mansell, Kohl’s chairman/president/ceo, November/December holiday sales showed consumers were responding favorably to the new

Moreover, “despite increased shipping costs related to our e-commerce business, we were able to achieve our gross margin guidance for the quarter. We believe our inventory levels and assortment are well-positioned as we transition into the spring season,” Mansell added.